XML 72 R52.htm IDEA: XBRL DOCUMENT v3.5.0.2
Loans Payable (Details Textual)
1 Months Ended 3 Months Ended 9 Months Ended
Jul. 08, 2016
Jun. 21, 2016
USD ($)
Jun. 21, 2016
CNY (¥)
Jun. 01, 2016
Dec. 11, 2015
Oct. 15, 2015
Sep. 07, 2015
a
Jun. 15, 2015
USD ($)
Jun. 15, 2015
CNY (¥)
Apr. 16, 2014
Jul. 15, 2013
Jun. 16, 2013
USD ($)
Jun. 16, 2013
CNY (¥)
Sep. 20, 2016
USD ($)
Sep. 20, 2016
CNY (¥)
Jul. 01, 2015
USD ($)
Jul. 01, 2015
CNY (¥)
May 19, 2015
USD ($)
May 19, 2015
CNY (¥)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Jun. 21, 2016
CNY (¥)
Dec. 31, 2015
USD ($)
Dec. 26, 2014
USD ($)
Jun. 16, 2013
CNY (¥)
Loans Payable (Textual)                                                      
Unpaid balance of short term debt                                       $ 13,926,742   $ 13,926,742     $ 13,859,800    
Average short-term borrowing rates                                       8.19% 6.65% 8.53% 7.93%        
Accounts receivable                                       $ 2,858,166   $ 2,858,166     1,904,396    
Total outstanding loan balance                                       2,994,998   2,994,998          
Interest expense for the short-term bank loans and long-term loans                                       354,011 $ 184,748 1,172,692 $ 845,751        
Long-term obligations under capital lease                                             3,217,785    
Current obligations under capital lease                                       9,265,227   9,265,227     6,860,412    
Total interest expenses for the sale-leaseback arrangement                                       237,053 $ 169,742 526,912 1,024,866        
Deferred gain on sale of leased equipment                                       159,300   159,300     327,637    
Value of land use right pledged for sale-leaseback financing                                       6,476,591   6,476,591     6,769,894    
Assets pledged for the guarantee of Orient Paper HB's capital lease                                       25,209,525   25,209,525     28,745,628    
Payments to lessor                                           542,678 $ 5,378,582        
Unsecured bank loans                                                
Sale-leaseback arrangement [Member]                                                      
Loans Payable (Textual)                                                      
Total financing proceeds                       $ 22,000,000 ¥ 150,000,000     $ 2,994,998 ¥ 20,000,000                    
Proceeds from sale of paper manufacturing equipment to leasing company                       22,000,000 ¥ 150,000,000                            
Nominal purchase price                       $ 2,246                             ¥ 15,000
Maturities repayment terms, description                       The remaining lease term up to June 21, 2017. The remaining lease term up to June 21, 2017.                            
Deferred gain on sale of leased equipment                       $ 1,379,282                              
Future minimum lease payment                               $ 1,617,574                      
Rural Credit Union of Xushui County [Member]                                                      
Loans Payable (Textual)                                                      
Loans from credit union                                       5,031,597   5,031,597     5,174,325    
Term Loan [Member] | Rural Credit Union of Xushui County [Member]                                                      
Loans Payable (Textual)                                                      
Total outstanding loan balance                                       1,287,849   1,287,849     1,324,380    
Long-term debt, Interest rate per month                   0.72%                                  
Installment repayment description                   The Rural Credit Union of Xushui County for a term of 5 years, which is payable in various installments from June 21, 2014 to November 18, 2018.                                  
Loan extension period                   5 years                                  
Loan amount                                       187,187   187,187          
Original repayment of loan                                       112,312   112,312          
New term loan agreement [Member] | Rural Credit Union of Xushui County [Member]                                                      
Loans Payable (Textual)                                                      
Total outstanding loan balance                                       $ 3,743,748   $ 3,743,748     3,849,945    
Long-term debt, Interest rate per month                                       0.72%   0.72%          
Installment repayment description                     The Rural Credit Union of Xushui County for a term of 5 years, which is due and payable in various installments from December 21, 2013 to July 26, 2018.                                
Loan extension period                     5 years                                
Security loan agreement by manufacturing equipment                                       $ 10,802,842   $ 10,802,842     14,236,083    
Loan amount                                       194,675   194,675          
Original repayment of loan                                       104,825   104,825          
Lease financing agreement [Member]                                                      
Loans Payable (Textual)                                                      
Short-term bank loans, fixed interest rate   15.00%                       15.00% 15.00%                 15.00%      
Average short-term borrowing rates                           18.25% 18.25%                        
Total financing proceeds   $ 3,387,513 ¥ 22,300,000                     $ 3,038,128 ¥ 20,000,000,000                        
Nominal purchase price   $ 349,385                                           ¥ 2,300,000      
Maturities repayment terms, description                               The 2015 Agreement sets forth a modified and extended payment schedule with respect to the remaining payment obligation, with the final repayment date extended to June 21, 2017. Under the 2015 Agreement, the interest accrues at a rate of 15% per annum starting on June 16, 2015, and is payable on the 20th of every March, June, September and December until the principal is paid off, except for the first payment, which is due on July 31, 2015. The 2015 Agreement sets forth a modified and extended payment schedule with respect to the remaining payment obligation, with the final repayment date extended to June 21, 2017. Under the 2015 Agreement, the interest accrues at a rate of 15% per annum starting on June 16, 2015, and is payable on the 20th of every March, June, September and December until the principal is paid off, except for the first payment, which is due on July 31, 2015.                    
Deferred gain on sale of leased equipment                       1,379,282                              
Payment of interest                           $ 141,695,000                          
ICBC Loan 1 [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt [1]                                             3,079,956    
ICBC Loan 1 [Member] | Factoring Facility [Member]                                                      
Loans Payable (Textual)                                                      
Short-term bank loans, fixed interest rate             5.06%                                        
Short-term bank loans interest rate as percentage of prime rate             110.00%                                        
Loan, maturity date             Sep. 06, 2016                                        
Area of land | a             330                                        
ICBC Loan 2 [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt [2]                                       2,994,998   2,994,998     3,079,956    
ICBC Loan 2 [Member] | Factoring Facility [Member]                                                      
Loans Payable (Textual)                                                      
Short-term bank loans, fixed interest rate         4.785%                                            
Loan, maturity date         Dec. 09, 2016                                            
ICBC Loan 3 [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt [3]                                       1,197,999   1,197,999        
ICBC Loan 3 [Member] | Factoring Facility [Member]                                                      
Loans Payable (Textual)                                                      
Short-term bank loans, fixed interest rate       4.62%                                              
Loan, maturity date       Dec. 31, 2016                                              
ICBC Loan 4 [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt                                       1,197,999   1,197,999          
The Commercial Bank of the City of Zhangjiakou [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt [4]                                       $ 7,487,496   $ 7,487,496     7,699,888    
Short-term bank loans, fixed interest rate           11.88%                                          
Loan, maturity date           Oct. 15, 2016                                          
China National Foreign Trade Financial & Leasing Co. [Member] | Lease financing agreement [Member]                                                      
Loans Payable (Textual)                                                      
Total financing proceeds                       22,000,000 ¥ 150,000,000                            
Proceeds from sale of paper manufacturing equipment to leasing company                       22,000,000 ¥ 150,000,000                            
Nominal purchase price                       $ 2,246                             ¥ 15,000
Lease service charge, Description                       Equal to 5.55% of the amount financed. Equal to 5.55% of the amount financed.                            
Lease service expense                       $ 1,360,000                              
Implicit interest rate                       6.15%                             6.15%
Stated capital lease                       $ 25,750,170                              
Payment for liquidated damage                                                   $ 9,200  
Payments to lessor               $ 3,000,000 ¥ 20,000,000                 $ 800,000 ¥ 5,000,000                
China National Foreign Trade Financial & Leasing Co. [Member] | Collateral Agreement [Member]                                                      
Loans Payable (Textual)                                                      
Land collateral for capital lease | m²                                       58,566   58,566          
Bank of Hebei [Member]                                                      
Loans Payable (Textual)                                                      
Unpaid balance of short term debt [5]                                       $ 2,246,249   $ 2,246,249        
Bank of Hebei [Member] | Factoring Facility [Member]                                                      
Loans Payable (Textual)                                                      
Short-term bank loans, fixed interest rate 5.22%                                                    
Loan, maturity date Jul. 08, 2017                                                    
[1] (a) On September 7, 2015, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,994,998 and $3,079,956 as of September 30, 2016 and December 31, 2015, respectively. The loan borne an interest rate of 5.06% per annum, which was 110% of the primary lending rate of the People's Bank of China at the time of funding. The loan was due on September 6, 2016. The working capital loan was guaranteed by Hebei Tengsheng Paper Co. Ltd ("Hebei Tengsheng"), an independent third party which owns the land use rights of about 330 acres (or 1.33 million square meters) of land in the Wei County and leases about one-fourth of the premises to Orient paper HB as our production bases of tissue paper and other future facilities, with its land use right and real property pledged by Hebei Tengsheng as collateral for the benefit of the bank. The loan was repaid on September 6, 2016.
[2] (c) On December 11, 2015, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,994,998 and $3,079,956 as of September 30, 2016 and December 31, 2015, respectively. The loan bears a fixed interest rate of 4.785% per annum. The loan is due on December 9, 2016. The working capital loan is secured by Hebei Tengsheng's land use right and real property.
[3] (d) On June 1, 2016, the Company entered into a working capital loan agreement with the ICBC, with a balance of $1,197,999 as of September 30, 2016. The loan bears a fixed interest rate of 4.62% per annum. The loan is due on December 31, 2016. The working capital loan is guaranteed by Hebei Tengsheng's land use right and real property.
[4] (b) On October 15, 2015, the Company entered into a working capital loan agreement with the Commercial Bank of the City of Zhangjiakou, with a balance of $7,487,496 and $7,699,888 as of September 30, 2016 and December 31, 2015, respectively. The loan bears a fixed interest rate of 11.88% per annum. The loan was due on October 15, 2016. The working capital loan was guaranteed by the Company's CEO and his wife, as well as secured by Hebei Tengsheng's land use right and real property as collateral for the benefit of the bank.
[5] (e) On July 8, 2016, the Company entered into a working capital loan agreement with the Bank of Hebei, with a balance of $2,246,249 as of September 30, 2016. The loan bears a fixed interest rate of 5.22% per annum. The loan is due on July 8, 2017. The working capital loan was guaranteed by the Company's CEO and his wife, as well as Hebei Tengsheng with its land use right and real property pledged by Hebei Tengsheng as collateral for the benefit of the bank.